Brett Fletcher Executive General Manager PNG & Indonesian Operations

Transcription

1 Hidden Valley Brett Fletcher Executive General Manager PNG & Indonesian Operations

2 Disclaimer Forward Looking Statement These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as may, will, expect, intend, plan, estimate, anticipate, continue, and guidance, or other similar words and may include, without limitation statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the company and its management s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company s control. Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. Ore Reserves and Mineral Resources Reporting Requirements As an Australian company with securities listed on the Australian Securities Exchange ( ASX ), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) and that Newcrest s ore reserve and mineral resource estimates comply with the JORC Code. As a company listed on the Toronto Stock Exchange ( TSX ), Newcrest is subject to certain Canadian disclosure requirements and standards, including the requirements of National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). In accordance with NI , Newcrest reports its ore reserves and mineral estimates in compliance with the JORC Code, along with a reconciliation for any material differences between the JORC Code and the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). There are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources, and Proven and Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORC Code. Exploration Target The potential quantity and grade related to any Exploration Targets referred to in this presentation is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. Refer to Newcrest s detailed exploration summary on our website at and on 2

3 Building capability in the Morobe province ahead of developing Wafi-Golpu FY13 production: 200 to 240koz 5 year outlook: 200 to 250koz a year Crusher upgrade in FY13 Environmental impact management Community programs Hidden Valley, Papua New Guinea Hidden Valley Gold Moz Silver Moz Gold production 2 Resource Reserve Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31, Figures quoted on 100% basis, Newcrest share is 50% 2 Annual gold production range: gold bar designates up to low end of range, blue signifies high end of range 100% numbers shown, Newcrest share is 50%. JV partner is Harmony Gold. 178koz 200 to 240koz 200 to 250koz FY12 FY13 FY17 3

4 Financial returns to improve Hidden Valley 2 FY12 - Cost improvement focus - Increase in silver recoveries - Improvements to overland conveying process Cash cost post credits Production cost post credits EBIT margin (2%) Targeting third quartile cash costs Unit cash cost per ounce 1 A$1,259 per ounce A$1,676 per ounce Return on net assets (0%) 1,500 1,000 Hidden Valley USD$/oz % 25.0% 50.0% 75.0% 100.0% -500 Percentile -1,000 1 Source: GFMS, accessed 25 September Figures shown on 100% basis 4

5 Actions to Deliver Mining Increase in material movements Equipment capacity: additional trucks and excavators Equipment availability: in-house maintenance Operator skills: training focus Pit dewatering Road base: limestone project Kaveroi Underground Study 5

6 Overland Conveyor (OLC) Focus on OLC reliability Crusher upgrade complete Q3 FY13 New crusher Air blasters Mobile air compressor Performance optimisation German designer engineering improvements Redesigned rollers Belt monitoring 6

7 Actions to Deliver Processing Short term: Optimisation Primary crusher upgrade Oxygen plant upgrade Flotation process control - Silver recovery Medium term: Capacity SAG mill motor upgrade Debottlenecking Reagent usage reduction Long term: Innovation Concentrate options 7

8 Mainyanda (Morobe Province) Classroom Strong community focus Community programs Health, water, education Benefit Sharing Agreement Trust run well Active participation by PNG run businesses Landowner agreement review in FY13 8

9 Focus on environmental impact management Environmental monitoring Sediment control Acid rock drainage management Upgrade engineering of waste dumps Limestone layers in dump construction Kaveroi underground study 9

10 PLAN VIEW Exploration target Mungowe Edie Creek ~ 90Koz (1,2) 2011 HAMATA RESOURCE* 2.2g/t Au 0.5Moz Au HIDDEN VALLEY PLANT Wau > 600Koz (1) 5 km Kulang target Exploration target Kerimenge 750Koz (1) Search for additional mining fronts Strong community focus Gold rich district, >8Moz endowment 1 Portfolio of highly prospective exploration targets within 10km of Hidden Valley Plant Current focus: Kerimenge Target generation in main Au trends 2011 HIDDEN VALLEY RESOURCE* 1.4g/t Au 5.7Moz Au (1) Endowment includes alluvial mining and historic production and non-jorc compliant resources. (2) Edie creek leases are not controlled by MMJV *Mineral Resource numbers quoted. Refer Newcrest Annual Statement of Mineral Resources & Ore Reserves as at December 31, Figures quoted on 100% basis. Hidden Valley carbonate breccia 10.5 g/t Au 689 g/t Ag